The mutual fund industry is eyeing a four-fold rise in assets under management (AUM) to Rs 100 lakh crore from the existing level Rs 25 lakh crore and an increase in investor base to 10 crore from the current level of two crore over the next decade, according to AMFI-BCG vision document.
The document, targeting penetration in B30 (beyond the top) cities, was released in Mumbai in the presence of Sebi Chairman Ajay Tyagi and mutual fund industry officials.
Diversifying the distribution outreach by leveraging the wide network of banks, post offices across the country, significantly augmenting the distribution base by another 4 lakh, strengthening direct and digital channels and offering simple savings solutions would be key to Indian mutual fund industry adding 80 million new investors and accomplishing the Rs 100 lakh crore AUM opportunity, AMFI said.
According to the latest edition of the AMFI-CRISIL fact book, between April 2016 — when the Association of Mutual Funds in India (AMFI) started disclosing monthly SIP contributions — and July 2019, the SIP (systematic investment plans) mode has helped rake in a significant Rs 2.30 lakh crore, nearly 23 per cent of the increase of Rs 10 lakh crore in assets under management of the industry, AMFI said. This is also reflective of almost three times growth in the number of SIP accounts to 27.3 million from 10 million over this period, AMFI said.
Besides, annual contribution through SIP witnessed increase in contribution by individual investors from Rs 44,000 crore in fiscal 2016-17 to nearly Rs 93,000 crore in 2018-19.
Nimesh Shah, Chairman, AMFI said: “The Rs 100 trillion MF AUM opportunity would ride on the government’s ambitious objective of transforming India into a $5 trillion economy, which is also now increasingly finding rising global resonance and support, in addition to inherent robust self-propelled growth prospects.”
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